Supernudge: A transparent pricing proposal for sports betting

Evan Calford

ANU Working Papers in Economics and Econometrics from Australian National University, College of Business and Economics, School of Economics

Abstract: This paper documents a policy proposal that improves consumer welfare in the sports betting industry by changing the framing of betting odds. On the demand side the proposal increases price salience, particularly for multibets, and acts as a classic behavioral nudge. On the supply side, the same change in framing increases the dimension of the pricing vector and, therefore, introduces a new dimension of price competition. In particular, the policy change introduces price competition into the market for multibets, reduces the current extraordinarily high profit margin on multibets, reduces non-price competition, and decreases demand for advertising from sports betting firms.

Keywords: Sports betting; transparent pricing; nudges; market structure (search for similar items in EconPapers)
JEL-codes: D47 D91 Z28 (search for similar items in EconPapers)
Date: 2024-07
New Economics Papers: this item is included in nep-com, nep-reg and nep-spo
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Persistent link: https://EconPapers.repec.org/RePEc:acb:cbeeco:2024-700

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